The Securities and Exchange Commission (SEC) has announced that Nigeria’s capital market will move to a faster trade settlement system known as T+1 from June 1, 2026.

This is a major step aimed at modernising the market and improving investor confidence.

Under the new arrangement, all eligible equities and commodities transactions will now be settled one business day after trading instead of the current two-business-day settlement cycle known as T+2.

The SEC, in a circular released on May 18, 2026, said the reform is part of ongoing efforts to improve market efficiency, reduce risks in transactions, strengthen liquidity and align the Nigerian capital market with global standards.

According to the Commission, the transition places Nigeria among countries modernising their settlement systems to meet international best practices.

The SEC explained that the last trading day under the current T+2 system will be Friday, May 29, 2026.

It added that trades carried out on May 29 and those executed on Monday, June 1, 2026, will both settle on Tuesday, June 2, 2026, to ensure a smooth transition into the new framework.

“From June 1 onward, all trades will operate under the T+1 framework, and it is essential for all capital market operators, securities exchanges, clearing and settlement infrastructure providers, custodians, registrars, issuers, and other stakeholders to ensure they are fully operationally ready by the commencement date,” the Commission stated.

The SEC said the move is expected to improve market operations by reducing counterparty exposure, strengthening risk management and allowing investors to gain access to their funds more quickly after selling shares.

For retail investors, the new framework means proceeds from share sales will be received faster, while institutional investors, custodians and other market operators are expected to adjust their internal systems and reconciliation processes before the implementation date.

The Commission said the reform also makes Nigeria more attractive to foreign institutional investors seeking efficient and globally competitive markets.

According to the SEC, the transition reflects Nigeria’s commitment to narrowing the infrastructure gap between its capital market and those of more advanced economies.

The Commission noted that countries such as the United States, Canada and Mexico have already adopted the T+1 settlement cycle, while India has moved further by testing instant settlement for selected trades.

The SEC said Nigeria’s movement from T+3 to T+2 and now to T+1 within a short period demonstrates the regulator’s determination to build a stronger and more dynamic capital market.

The Commission urged all market participants to review and align their systems, operational procedures and controls ahead of the commencement date to avoid disruptions.

“The Commission will continue to engage stakeholders and monitor the implementation process to ensure an orderly and seamless transition. We remain committed to strengthening market integrity, enhancing investor confidence, and fostering the development of a modern, resilient, and globally competitive Nigerian capital market,” the circular added. (The Nation)

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